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Combating Organic Food Fraud in India: Leveraging Technology for Authenticity & Traceability

The organic food industry in India, once celebrated for its health benefits and sustainability, is now facing a significant challenge: a rise in organic food fraud. Recent reports have revealed instances of mislabeling and fraudulent certifications, leading to widespread consumer deception. As consumers increasingly seek organic products for their health benefits, these fraudulent practices threaten both their well-being and the reputation of the entire sector.

Organic Food Market Overview

The Organic Food and Beverages Market in India is projected to experience substantial growth. The market size is anticipated to increase from USD 164.47 billion in 2023 to USD 220.30 billion by 2028, reflecting a compound annual growth rate (CAGR) of 6.02% over the forecast period spanning from 2023 to 2028. This growth highlights the growing consumer demand for organic products, which is unfortunately being overshadowed by fraudulent practices.

Common Types of Organic Food Fraud

Understanding the various forms of organic food fraud is essential for consumers and stakeholders alike. Some prevalent types include:

Mislabeling and False Certification

One of the most common forms of fraud involves mislabeling conventional produce as organic. Fraudulent entities may forge certification documents, misleading consumers into believing they are purchasing genuinely organic products. This includes situations where imported non-organic goods are sold as organic, and instances where non-organic products are marketed as organic to consumers.

Inadequate Adherence to Organic Standards

Some producers may falsely claim their products are organic while failing to adhere to stringent organic farming standards, such as using prohibited pesticides or synthetic fertilizers. A significant issue in India is the authenticity of organic produce. Many farmers market their goods as organic while incorporating synthetic fertilizers and pesticides, particularly in fruits and vegetables. This undermines consumer trust and damages the integrity of the organic market.

Imported Non-Organic Goods Sold as Organic

With the global nature of food supply chains, imported goods may find their way into the organic section. Unscrupulous sellers exploit this situation by selling non-organic items as imported organic produce.

Why is This Happening?

The rise in organic food fraud can be attributed to several factors:

Challenges in Regulating Organic Certification

Regulating the organic food sector in India poses significant challenges due to vast agricultural regions, limited inspection resources, and complex supply chains. These challenges create opportunities for fraudulent activities that compromise the integrity of the organic label. According to a recent study by ICRIER, many dealers pass off inorganic products as organic due to inadequate regulatory frameworks and penalties for offenders.

The Impact on Consumers

Consumers choose organic products with the expectation of superior quality and health benefits. Falling victim to food fraud undermines this trust and can expose individuals to harmful chemicals and practices they sought to avoid. Instances where consumers purchased certified organic fruits, only to discover they contained residues from prohibited pesticides, further emphasize the severity of the issue.

Standards and Regulations

To address these concerns, the Food Safety and Standards Authority of India (FSSAI) has issued the Food Safety and Standards (Organic Foods) Regulations, 2017. These regulations lay down the requirements for the production, processing, labeling, and certification of organic food products. The FSSAI regulations recognize two certification systems for organic food in India:

  1. National Programme for Organic Production (NPOP): A government-run certification program implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA). Here is the complete list of NPOP certification bodies.
  2. Participatory Guarantee System for India (PGS-India): A community-based certification program implemented by the Ministry of Agriculture and Farmers Welfare.

Both programs adhere to principles such as the prohibition of synthetic pesticides, herbicides, and fertilizers, as well as the prohibition of genetically modified organisms (GMOs). Certified products can use the India Organic logo.

The regulations also require that organic products be labeled with specific details, including the name and address of the producer, the certification body, the certification number, and the production method (NPOP or PGS-India).

Traceability Systems Used by APEDA

To combat fraud and ensure that organic products meet the required standards, APEDA (Agricultural and Processed Food Products Export Development Authority) has implemented several traceability systems to ensure transparency and authenticity in the organic food sector. These systems allow products to be tracked from the farm to the consumer, reducing fraudulent practices and ensuring food safety. Key systems include: Hortinet, Peanut.Net, Meat.Net, TraceNet and Basmati.Net. (Read more about these traceability systems at APEDA)

These traceability systems play a crucial role in protecting the integrity of organic certification in India.

The Role of Advanced Labeling Solutions

To combat fraud effectively, advanced labeling solutions incorporating QR codes and RFID (Radio Frequency Identification) technology are crucial.

Enhanced Traceability

QR codes and RFID tags embedded in product packaging enable real-time tracking of organic products throughout the supply chain. This data-driven approach allows for the rapid identification of discrepancies or instances of fraud. If a batch of produce is found to be mislabeled, traceability systems can quickly pinpoint its origin and track its journey through the supply chain.

Authenticity Verification

Consumers can scan QR codes on product labels to access critical information such as farm origin, production methods, and certification details. This transparency empowers consumers to make informed purchasing decisions and verify the authenticity of organic claims.

Improved Food Safety

Traceability systems powered by RFID technology can quickly identify and isolate contaminated products, minimizing the risk of widespread outbreaks and protecting public health. The ability to respond swiftly in food safety incidents, such as those in 2024-25, highlights the effectiveness of such systems in safeguarding public health.

How Utopia Digitech’s Track and Trace System Fits In?

Utopia Digitech’s SureAssure platform complements existing traceability frameworks like those used by APEDA or other private brands. SureAssure utilizes digital technologies such as QR codes to offer enhanced traceability solutions and product authentication for organic products.

Key benefits of integrating SureAssure into the traceability landscape include:

  • Real-time Tracking: SureAssure enables real-time monitoring of organic products throughout the supply chain, ensuring that products are verified at every stage.
  • Consumer Transparency: Consumers can scan QR codes on products to view detailed information such as farm origin, certification details, and production methods, ensuring they make informed purchasing decisions.
  • Improved Supply Chain Visibility: The platform offers businesses enhanced visibility across their supply chain, helping identify potential fraud and ensuring that only authentic organic products reach the consumer.

By integrating SureAssure into your organic food brand’s traceability systems, the Indian organic food industry can significantly enhance its ability to combat fraud, bolster consumer trust, and ensure strict compliance with organic standards

Agmark certification for organic food builds consumer trust and ensures quality, with Holostik’s advanced security features adding an extra layer of authenticity and combating fraud.

Consumer Engagement: A Critical Component

While technology plays a vital role in combating fraud, consumer awareness and engagement are equally important. Educating consumers about how to verify the authenticity of organic products can significantly reduce their vulnerability to fraudulent claims.

Practical Tips for Consumers:

  • Look for Certification Seals: Always check for recognized organic certification seals, indicating compliance with specific standards set by accredited organizations.
  • Research Producers: Use online databases provided by regulatory bodies like FSSAI to verify producers’ authenticity.
  • Engage with Brands: Follow brands on social media or subscribe to newsletters for updates regarding their practices and product authenticity.
  • Utilize Technology: Scan QR codes or use mobile apps designed for verifying product authenticity.
  • Report Suspected Fraud: If you suspect a product is mislabeled or fraudulent, report it to relevant authorities like FSSAI or local consumer protection agencies.

Companies driven by some social cause like Utopia Digitech provide innovative phygital solutions through dedicated security solutions platforms like SureAssure, which offer comprehensive tracking capabilities, allowing consumers to verify product authenticity seamlessly.

The Importance of Traceability in Food Safety

Traceability plays a critical role in ensuring food safety in India’s organic sector, where compliance with strict standards is essential. Implementing effective traceability systems helps mitigate risks associated with contamination and ensures that products are genuinely organic.

Rapid Response to Contamination

Traceability systems can quickly identify contamination sources and isolate affected products, minimizing public health impacts.

Adhering to Compliance

Traceability data ensures compliance with organic standards and regulations, helping maintain market integrity. Revised USDA regulations emphasize robust monitoring mechanisms to hold producers accountable.

Enhanced Risk Management

Traceability systems help businesses identify vulnerabilities within their supply chains, allowing them to proactively mitigate risks and improve food safety practices.

Way Forward

As demand for organic food continues to grow in India, so does the risk of fraud. By adopting advanced labeling solutions such as QR codes and RFID technology, engaging consumers in verifying product authenticity, and implementing robust traceability systems, stakeholders can protect both their businesses and consumer trust. Companies like Holostik India and Utopia Digitech are leading this charge by providing innovative solutions that promote transparency and safety within India’s growing organic food industry.

In this evolving organic food market, where consumer awareness is paramount, all parties, from producers to retailers, must prioritize integrity in their practices. By collaborating toward a transparent supply chain backed by technology-driven solutions, we can ensure that consumers receive authentic organic products while safeguarding public health against fraudulent practices.

Reach us at 📞 0120-4192700 and ✉ info@utopiadigitech.com or visit 🌐 www.utopiadigitech.com

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Serialization and Track & Trace: Ensuring Compliance in Pharmaceutical Manufacturing

In a recent inspection of pharmaceutical manufacturing units by the Central Drugs Standard Control Organization (CDSCO), Indian drug regulator, approximately 36% of the units faced closure due to non-compliance issues. This statistic underscores the critical need for stringent compliance measures within the pharmaceutical industry.

India, home to around 10,000 pharmaceutical manufacturing units, with the majority being micro-small and medium-scale facilities, is on a trajectory of remarkable growth. Currently valued at $55 billion, the Indian pharmaceutical sector is poised to reach $130 billion by 2030 and a staggering $450 billion by 2047. With exports contributing $27.85 billion, India is reinforcing its position as the ‘Pharmacy of the World.’

Serialization, a key process within the pharmaceutical supply chain, plays a pivotal role in enhancing transparency and safeguarding product authenticity.

What is Serialization in Pharmaceutical Packaging?

Serialization involves assigning a unique identifier to individual units or batches of pharmaceutical products at various packaging levels – primary, secondary, and tertiary.

The implementation of serialization enables the tracking and tracing of products throughout the supply chain, facilitating efficient recall procedures and reducing the risk of counterfeit medicines entering the market. This process involves establishing a parent-child relationship between individual units and their respective packaging levels, ensuring accurate identification and verification.

At Utopia Digitech, part of Holostik group, we specialize in providing advanced track and trace solutions that incorporate serialization and aggregation functionalities. Our solutions, spanning from L1 to L5, empower pharmaceutical companies to comply with regulatory requirements, enhance operational efficiency, and promote consumer safety.

The Three Levels of Packaging

Understanding the different levels of packaging in the pharmaceutical industry is crucial for ensuring product safety and compliance. Here’s a simple breakdown of each level:

Why Serialization Matters?

  1. Regulatory Compliance: Meeting global standards and avoiding shutdown risks
  2. Counterfeit Prevention: Creating an unbreakable chain of authenticity
  3. Supply Chain Visibility: Real-time tracking from manufacturer to patient
  4. Quality Assurance: Instant recall capabilities and product history tracking

To ensure effective product traceability, many countries adopt serialization guidelines established by the GS1 organization. By working closely with regulatory bodies, GS1 develops frameworks that utilize serialization to enhance product tracking.

Utopia Digitech: Your One-Stop Solution for GS1 Barcode Labels and Packaging

At Holostik, we understand the complexities of the pharmaceutical industry and offer globally recognized GS1 standards serialization and track & trace solutions to help you meet regulatory requirements and protect your brand reputation.

Our solutions cover the entire supply chain, from primary packaging (individual product units) to secondary packaging (product bundles) and tertiary packaging (shipping cartons).

By leveraging advanced technologies, we ensure seamless integration with your existing systems and provide real-time insights into your supply chain.

To implement serialization, you’ll need to incorporate the following key elements:

  1. Global Location Number (GLN): Identifies the country of origin.
  2. Global Trade Item Number (GTIN): Specifies the product type.
  3. Serial Number (SGTIN): A unique identifier for each individual product within a specific GTIN.
  4. Lot Number: Indicates the manufacturer-specific batch from a particular production run.
  5. Expiration Date: Specifies the product’s validity period.

By integrating these elements into your product packaging and supply chain processes, you can significantly improve product traceability, enhance quality control, and meet regulatory requirements.

Why Serialization is the Best Line of Defense Against Pharmaceutical Counterfeiting?

Serialization plays a crucial role in combating counterfeiting. It enables robust product traceability, allowing authorities and consumers to verify the authenticity of products throughout the supply chain.

Here’s how serialization works to deter counterfeiting:

  1. Unique Identification: Each product is assigned a unique serial number (SGTIN), making it distinct from others of the same type.
  2. Data Capture and Verification: As products move through the supply chain, their serial numbers are scanned and recorded at various checkpoints. This data is then transmitted to a centralized database.
  3. Real-time Tracking: The database allows real-time tracking of product movements, identifying any deviations from the authorized supply chain.
  4. Anomaly Detection: Automated systems can detect anomalies, such as products appearing in unauthorized locations or with discrepancies in their serial numbers.
  5. Authentication and Verification: Consumers can use mobile apps or other tools to scan product codes and verify their authenticity against the centralized database.

By implementing serialization, regulatory authorities, manufacturers, and consumers can work together to:

  • Disrupt Counterfeit Networks: Identify and dismantle counterfeit operations by tracking the movement of illegitimate products.
  • Protect Public Health: Ensure that consumers receive genuine, safe, and effective products.
  • Safeguard Brand Reputation: Protect brand integrity and consumer trust.

In essence, serialization provides a powerful tool to combat counterfeiting and safeguard the integrity of supply chains.

Are you ready to transform your pharmaceutical supply chain? Discover how Utopia can be your trusted partner in compliance.

Reach us at 📞 0120-4192700 and ✉ info@utopiadigitech.com or visit 🌐 www.utopiadigitech.com

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Increase your ROI with Utopia Digitech track and trace solutions

Various business organizations in the current times are constantly focusing on identifying ways to improve their supply chain management system. They employ all possible means in this direction. Track and trace solutions are among them because every business nowadays requires real-time tracking of their goods and shipments for better supply chain management.

This is the reason why we at Utopia provide our clients with end-to-end and comprehensive GS1 track and trace solutions for expanding the efficiency of their supply chain management.

Why Choose our Extensive Track and Trace Solutions

Regardless of where your business stands, the global marketplace has been pretty turbulent lately. That is not all; the standard methods in a supply chain have grown much more challenging globally. Still, there is an extensive assortment of regulations that an organization must comply with when operating globally.

This is the reason why your supply chain management demands to be extremely flexible and capable of adapting to evolving global requirements promptly.

At Utopia, we understand all these concerns, and hence we have built excellent track and trace solutions that are perfect for catering to the supply chain management needs of all business sectors. By using our end-to-end-track and trace solutions, you can easily reduce product duplications and generate a higher return on your investments and a competitive edge in the market.

Mentioned below are a few more reasons why you must go for our track and trace solutions for your supply chain management.

Reduces the chance of product duplication

One of the most significant problems that business enterprises face during their supply chain management is overcoming the difficulty of product duplication.

By choosing out track and trace solutions, you can easily track your products for any duplication and identify and fix problems early to reduce the duplication possibilities and save your valuable time for other operations.

Increase efficiency

With our comprehensive track and trace solutions in place, you can increase your functional and operational efficiency by an automatic and immediate update in your books of accounts, leading to zero human errors and delayed supplies and vendor payments.

Apart from this, fewer reconciliation requirements enhance the speed of transactions and diminish the expenses for the organizations.

Better Inventory management

The most significant reason to invest in our business is that we understand how the mismanagement of inventories can lead to substantial losses for your business.

This is the reason why we have developed extensive and far-reaching track and trace solutions that allow you to manage your inventory in a better way. In addition to this, our track and trace solutions can further enhance on-time delivery by regulating all activities across your supply chain and point towards more efficient demand planning.

Reduce operation time

Lack of automated track and trace solutions can take up a lot of your valuable business time in manual tracking and paperwork, which is additionally more prone to human errors. By choosing our automated track and trace solutions, you can reduce your operations time greatly.

You can foster better interaction and collaboration between suppliers, partners, and distributors. After looking at the points mentioned above, you can infer that you can have a more centralized view of your supply chain with the right track and trace solutions.

Utopia is a market leader in presenting high-grade track and trace solutions tailored to your distinct industry needs. Our impeccable assistance and bug-free software solutions always ensure high-level profit and productivity.

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3 ways warranty management can improve your business

Every year, organisations lose a large amount of money due to warranty claims processing issues. So, there is a dire need for effective warranty management that can reduce warranty spending, improve the quality of products, increase supplier recovery, and enhance end-customer satisfaction. In today’s blog, we discuss three ways automated warranty management systems can improve your business.

Faster claims process

An automated warranty management system in place helps to easily track warranties across the merchandise lifecycle. The system also helps in optimizing product value. The process helps in making the warranty claims process faster. It saves you an ample amount of time in warranty claim evaluation which otherwise is wasted in dealing with heaps of documents in case of a manual warranty management process.

Improved client satisfaction

Implementation of warranty management system improves client satisfaction manifold. The system holds an integrated data framework which ensures swifter data recall for customers and other stakeholders. The system helps in boosting brand image of the company by providing services on time.

No fraud claims and low operational cost

Warranty processes and policies are important part of a business enterprise. An automated warranty management system in place helps to make the data more transparent. This reduces the chances of false claims and thus helps in improving the warranty management of the organisation. Moreover, warranty management also improves product quality considerations, customer and manufacturer relationship and operational efficiency. This together brings down the costs of the organisation.

Utopia provides an effective warranty management process through which one can track all warranties throughout the lifecycle of the product. The process not only ensures improved customer satisfaction but increases product quality and reduces service costs. We provide customised warranty management system through smart labels or holograms incorporated with QR codes.

When the consumer scans the QR code all the product information like manufacturing date, expiry date, warranty period, etc. feeds into the database of the manufacturer. This information later helps the manufacturer, retailer, and the consumer in processing warranty claims with ease.

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Top 3 reasons you need inventory management system for your business

Are you planning to start a new venture? If you’ve set your foot in the world of business, and still don’t have any idea about managing the flow of goods in your system; well, this article has got you covered!

What is Inventory Management?

Inventory management is defined as having the right products at the right place & time. As simple as it may sound, without proper planning and organization, you are not very far from falling into a soup of problems that will hinder the process of your hard-earned business.

It’s a chain where each one in the pyramid right from the sourcing department to the retailers has equal roles to play.

Manufacturing companies, marketing, and sales, all prefer more inventory. Deciphering problems in warehouse management by increasing the storage area and possessing knowledge about the number of warehouses in a particular area will also demand more inventory.

Let’s see this with a simple example.

A customer comes to a retail shop to buy a particular item. It isn’t available there, so the manager sends an employee to the warehouse to check. If there’s still no stock there, they need to contact the manufacturing unit that has to eventually contact the sourcing department for the supply of raw materials.

Due to mismanagement of the retailer, there’s a line of problems created which could be easily solved if the retailer had invested time and money in a reliable inventory management solution.

3 Main Reasons You Need Inventory Management

Saves time

Having a clear knowledge of the number of supplies at a given moment cuts off unnecessary running of employees here and there to check the warehouses. Instead, they can invest this time in some other fruitful tasks.

Saves money

Buying bulk of goods that have good demand is beneficial as it cuts down the overall cost to the company. Moreover, there’s no obstruction of cash flow from the customer.

Customer satisfaction

Market trends are ever-changing and if you can provide what the customer wants, not only do you retain a customer but also satisfy their need. There are various methods you can put into practice. Preparing spreadsheets, ABC analysis, bulk shipment, demand forecasting, drop shipping, and six sigma to name a few.

Do you think this is too much to handle?

If you want someone you can trust for warehouse management solutions, Utopia has your back.

We are among few companies with CMMI Level 3 certification and have a team of in-house software developers who can cater custom warehouse management solutions for your business. Right from the stock count, stock supply, and customer satisfaction, you’ll get everything here!